Flex LNG Ltd (Flex LNG) (NYSE/OSE: FLNG) has announced that the Balance Sheet Optimization Programme has been finalized with the signing of the $290m loan agreement for the refinancing of Flex Freedom and Flex Vigilant.
Since our Q4 earnings report on February 14, 2023, we have completed the refinancing of Flex Aurora, Flex Artemis and Flex Amber during February, while the lease for Flex Rainbow and the refinancing of Flex Freedom and Flex Vigilant were closed in March.
As announced in the Q4 earnings presentation, these financings will provide Flex LNG with $204m in net cash proceeds in Q1. At year-end 2022, Flex LNG had a cash balance of $332m thus these re-financings further add to an already substantial cash balance.
Knut Traaholt, CFO of Flex LNG Management AS, commented:
“We are pleased to have completed our approx USD 2 billion refinancing process according to plan and on schedule despite the recent turmoil in the financial markets. We are grateful for the trust and support from our banks and lease providers which have resulted in a very attractive funding platform for Flex LNG. We have during the last 16 months refinanced all ships in the Flex LNG fleet, not only significantly boosting our cash position in total by $387m, but also reduced interest margin significantly and stretched the repayment and maturity profiles with the first loan not due before 2028. Our financial strength together with the substantial charter backlog provide us with significant commercial and financial flexibility to further develop the Company ”.